WE LOVE OUR DEBT, it is truly magical.
It allows countries to provide endless benefits to their citizens, and allows those citizens to live beyond their station in life. It provides all of us with a great sense of reward, without that pesky business of toil.
It is blissful indeed, until your lender figures out that you can't pay it back.
Mortgage debt, consumer credit, auto loans - 2007
State budgets - 2009 and on
Sovereign debt - 2011 and on
Student loans - 2012
The Post Office - 2012
Public Union Benefits - very soon
Soc, Sec, Medicare, Medicaid - very soon
U.S. Debt - sooner than we think
We have all felt the pain of having our "source of free money" torn from our hands, 9.1% unemployment, failed businesses, and great suffering abounds.
We are at the very beginning of deleveraging our debt in the United States.
Many will eliminate their debt through default (homes and businesses foreclosed upon) and some will try to pay it off.
But some insist on continuing the binge, unalarmed by what they see around them,
$15 trillion in debt, adding $1.3 trillion in new debt per year, and the Fed printing $5 trillion in fake money and planning to print more, QE3.
The tail of Greece, Italy, and Spain should serve as a warning. Every American should read about the enormous suffering taking place in these countries, courtesy of forced deleveraging.
This will be our future, if we don't stop the SPENDING.
This is the latest from Spain: